China’s demand boosts sales of soybeans and pork exports
Published on: November 10, 2023.
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Demand from China Boosts Soybean and Pork Export Sales
During the week ending November 2nd, China played a significant role in driving the export business for soybeans and pork. According to the USDA, there were week-to-week gains in export sales for both commodities, with China leading the way. Cotton also saw significant purchases from China, although sales were down compared to the previous week. On the other hand, corn, wheat, and soybean product export sales all saw improvements from the previous week, while beef, sorghum, and rice sales were lower. The export business is influenced by various factors, including seasonal changes in supply and currency trade.
Soybeans and Pork Exports
Physical shipments of soybeans exceeded the projections for the current marketing year. The marketing year for wheat, cotton, and rice started on June 1st, August 1st, and October 1st, respectively, while the marketing year for soybeans, corn, and sorghum began on September 1st. For beef and pork, the marketing year aligns with the calendar year.
Soybeans were pegged at 1,080,200 tons (39.7 million bushels), representing a 7% increase from the previous week. However, it was 8% lower than the four-week average. The majority of soybean purchases came from China (692,400 tons) and Mexico (230,600 tons). However, unknown destinations canceled on 452,200 tons. During this marketing year, soybean exports reached 890.7 million bushels, compared to 1.208 billion bushels the previous year.
Net pork sales showed significant growth, totaling 49,000 tons, which was a 58% increase from the previous week and a 77% increase from the four-week average. China, Mexico, Japan, South Korea, and Colombia were the main buyers of pork. The shipments of 35,500 tons were 23% larger than the previous week and 29% greater than the four-week average. Mexico, Japan, South Korea, China, and Colombia were the top destinations for pork shipments. Furthermore, there were sales of 2,300 tons for 2024 delivery to South Korea and Japan.
Wheat and Corn Exports
Wheat exports reached 354,300 tons (13 million bushels), which was a 29% increase from the previous week. However, it was down 26% from the four-week average. South Korea and unknown destinations were the major purchasers of wheat.
Corn exports rose to 1,015,300 tons (40 million bushels), marking a 36% increase from the previous week and a 4% increase from the four-week average. Mexico and unknown destinations were the primary buyers of corn. Additionally, there were sales of 140,000 tons (5.5 million bushels) for 2024/25 delivery to Mexico.
Sorghum and Rice Exports
Sorghum sales experienced a significant decline, reaching 139,000 tons (5.5 million bushels), which was 63% lower than the previous week and 12% below the four-week average. All sorghum sales were to China.
Rice sales dropped to 36,000 tons, representing a 62% decrease from the prior week and a 43% decrease from the four-week average. Venezuela and Mexico were the main buyers of rice.
Conclusion
China’s demand continues to play a vital role in driving the export sales of soybeans and pork. Despite lower sales in beef, sorghum, and rice, other commodities like corn, wheat, and soybean products experienced growth. These export sales are influenced by various factors, including seasonal changes in supply and currency trade.
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